Correlation Between Apogee Enterprises and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises and CaliberCos at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apogee Enterprises and CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and CaliberCos Class A, you can compare the effects of market volatilities on Apogee Enterprises and CaliberCos and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apogee Enterprises with a short position of CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and CaliberCos.
Diversification Opportunities for Apogee Enterprises and CaliberCos
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apogee and CaliberCos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A and Apogee Enterprises is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apogee Enterprises are associated (or correlated) with CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Apogee Enterprises i.e., Apogee Enterprises and CaliberCos go up and down completely randomly.
Pair Corralation between Apogee Enterprises and CaliberCos
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.51 times more return on investment than CaliberCos. However, Apogee Enterprises is 1.95 times less risky than CaliberCos. It trades about 0.1 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.07 per unit of risk. If you would invest 6,113 in Apogee Enterprises on September 5, 2024 and sell it today you would earn a total of 2,268 from holding Apogee Enterprises or generate 37.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. CaliberCos Class A
Performance |
| Timeline |
| Apogee Enterprises |
| CaliberCos Class A |
Apogee Enterprises and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and CaliberCos
The main advantage of trading using opposite Apogee Enterprises and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises position performs unexpectedly, CaliberCos can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CaliberCos will offset losses from the drop in CaliberCos' long position.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
| CaliberCos vs. Hudson Pacific Properties | CaliberCos vs. Bassett Furniture Industries | CaliberCos vs. Apogee Enterprises | CaliberCos vs. Hafnia Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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